Wish u a Very Happy Diwali &
a Prosperous New Samvat Year
Market has been in a lackluster mode for past two weeks, with no major movement on either side. Market Fast Food has been mentioning, in the earlier posts the Sensex levels 16600 – 17000 – 17700 as the trading range and we are hovering around 17000 +/- 250 points, and we may continue to do so until most of the large cap companies declare their quarterly results.
Indian markets no doubt ran ahead of fundamentals by factoring in the future too early, hence we need a correction, which everyone is expecting, but is just not coming! Market is superior and hence things which every one expects may not happen and spring up surprises after all have lost their patience. The fact is we may have corrected by now but the global markets are very supportive at this point of time and giving our markets a great comfort or cushion.
Correction need not necessarily be a fall in Sensex, we can witness a time correction as well, wherein we just pass a quarter in a range by which the PE automatically comes down to an extent. Beware! market is liquidity driven which is evident from the FII numbers and the rising Rupee, hence it’s not advisable to stay fully in cash. Indian GDP forecast has been revised today northwards by a foreign research house which may further attract money.
The biggest threat MFF foresees and worries about is the atrocious, big bully behavior of China, and the timid response of the Indian government to the situation. Chinese premier suddenly wakes up after ten days of Indian PM’s visit to the Arunachal Pradesh and objects it claiming it to be a disputed area! But on the other hand China is helping Pakistan establish various projects in PoK which is also a disputed area on account of Pak illegally occupying a part of Indian state.
China is a big threat. Pakistan Jihadis or the internal (many times supported by cross border) Naxalites can only spread unrest in India, but China is having a larger vision of occupying parts of our country. Any escalation on this or a confrontation can just melt Sensex!
We continue to hold our earlier recommendations, and those not having Bartronics can buy at these fallen levels. A call on other stocks will be sent through MFF Free SMS group (Send a msg JOIN MARKETFASTFOOD to 567678). New calls also would be delivered through the sms group. Also join http://finance.groups.yahoo.com/group/MarketFastFood/ where we intend to post all market related information.
Stock Specific Disclosure: We hold MICROTEC & Bartronics.
Disclaimer: Investing in Equity & other Similar markets can be risky. The recommendations and views mentioned are based on certain expectation’s which may or may not occur. The author thereby, will not be Liable for any loss incurred, monetary or otherwise. Seeking personal advice from your Financial Planner is recommended before acting on any of the substance given herein.
CERTIFIED FINANCIAL PLANNERCM
& INVESTMENT STRATEGIST